PRECAST COMPANY VALUATION DURING COVID-19 AND DEVELOPMENT OF NATIONAL CAPITAL CITY (IKN)

• Main Author: Rifqi Ramadanto, Muhammad
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75944
• Institution: Institut Teknologi Bandung

Joko Widodo, the president of Indonesia has emphasized the construction and improvement of Indonesia’s infrastructure ever since he is elected as president in 2014. The numerous infrastructure construction demand to support the development of Indonesia could potentially lead to high amount of demand in concrete structure. The current challenge of PT. WIKA Beton is to survive the covid pandemic era and recover their financial ability as strong as the pre pandemic era. However, ever since the pandemic hit Indonesia the company felt the effects negatively and lost a lot of revenue in a span of one year. In the recent year of 2020, the company’s revenue dropped from Rp 7,08 trillion in 2019 to Rp. 4,8 trillion in 2020. The methodology used in this research is descriptive financial ratio analysis to define the firm’s financial performance and discounted cash flow analysis as a valuation method to determine whether the company is overvalued or undervalued. The objective of this research is to give an assessment of the company valuation of PT. WIKA Beton in order to ease the unsure decision of potential investors. Based on the findings, the company is undervalued from both absolute and relative valuation, with an intrinsic value per share Rp. 288.55 and Rp. 237.83 from two possibilities and compare to the company current share price of Rp. 139 as per 29th May 2023. Given that the company is stated as undervalued based on this research, the company should improve their communication and marketing activities to raise investors awareness of the actual value of the company as indicated by the company’s intrinsic value per share.